DOI QR코드

DOI QR Code

An Efficiency Analysis of Supply Chain Quality Management Using the Multi-stage DEA Model: Focused on the Domestic Defense Industry Companies

다단계 DEA 모형을 활용한 공급망 품질경영 효율성 분석: 국내 방산업체를 대상으로

  • Jeon, Gyeryong (Defense Aquisition Program Agency(Graduate School of Business Administration, Soongsil University)) ;
  • Yoo, Hanjoo (Division of Business Administration, Soongsil University)
  • 전계룡 (방위사업청, 숭실대 대학원 경영학과) ;
  • 유한주 (숭실대학교 경영학부)
  • Received : 2018.12.11
  • Accepted : 2018.12.31
  • Published : 2019.03.31

Abstract

Purpose: The purpose of this study was to present a methodology for assessing the efficiency of supply chain quality management considering characteristics of defense industries to provide academic and policy implications for strengthening quality competitiveness of military supplies. Methods: Using the defense industry's empirical data, conduct an efficiency evaluation by utilizing a multi-stage DEA/Entropy Model for defense industries subject to the quality level survey of military goods manufacturers in 2017. Results: The results of this study are as follows; the first step of the multi-stage DEA model, Quality Management Performance Efficiency Analysis, shows that the CCR model and the BCC model are more efficient than the parent company. the second stage of the multi-stage DEA model showed that the CCR model was slightly more efficient than the parent company and the BCC model was more efficient than the parent.the overall efficiency value of the multistage DEA model, calculated by multipointing the efficiency value of the first stage by the second stage, was more efficient than the parent. Conclusion: The results of this study show that the efficiency of supply chian quality management performance and profitability in the defense industry can be analyzed for the first time using the multistage DEA/Entropy model to identify specific inefficiencies and support objective decision making.

Keywords

PJGOB9_2019_v47n1_163_f0001.png 이미지

Figure 1. The difference of CCR and BCC Model

PJGOB9_2019_v47n1_163_f0002.png 이미지

Figure 2. Research procedure

PJGOB9_2019_v47n1_163_f0003.png 이미지

Figure 3. Multi-stage DEA process

Table 1. Input and output factors of DEA studies for defense industries

PJGOB9_2019_v47n1_163_t0001.png 이미지

Table 2. Input and Output

PJGOB9_2019_v47n1_163_t0002.png 이미지

Table 3. Reason for selecting parameters

PJGOB9_2019_v47n1_163_t0003.png 이미지

Table 4. Summary of first-stage efficiency analysis results

PJGOB9_2019_v47n1_163_t0004.png 이미지

Table 5. Causes of first-stage inefficiency

PJGOB9_2019_v47n1_163_t0005.png 이미지

Table 6. First stage Shannon's Entropy results

PJGOB9_2019_v47n1_163_t0006.png 이미지

Table 7. First stage Comprehensive Efficiency Score results

PJGOB9_2019_v47n1_163_t0007.png 이미지

Table 8. Summary of second-stage efficiency analysis results

PJGOB9_2019_v47n1_163_t0008.png 이미지

Table 9. Causes of second-stage inefficiency

PJGOB9_2019_v47n1_163_t0009.png 이미지

Table 10. Second stage Shannon's Entropy result

PJGOB9_2019_v47n1_163_t0010.png 이미지

Table 11. Second stage Comprehensive Efficiency Score results

PJGOB9_2019_v47n1_163_t0011.png 이미지

Table 12. Single stage Shannon's Entropy result

PJGOB9_2019_v47n1_163_t0012.png 이미지

Table 13. Summary of the total efficiency analysis results of the CCR model

PJGOB9_2019_v47n1_163_t0013.png 이미지

Table 14. Summary of the total efficiency analysis results of the BCC model

PJGOB9_2019_v47n1_163_t0014.png 이미지

Table 15. Summary of the total efficiency analysis results of the combined model

PJGOB9_2019_v47n1_163_t0015.png 이미지

References

  1. Aigner, D. J., and Chu, S. F. 1968. "On Estimating the Industry Production Function." The American Economic Review 58(4):826-839.
  2. Anderson, M. and A.S. Sohal. 1999. "A Study of the Relationship between Quality Management Practices and Performance in Small Businesses." International Journal of Quality and Reliability Management 16(9):859-877. https://doi.org/10.1108/02656719910289168
  3. Atkinson, S. E., and Halvorsen, R.(1980), "A Test of Relative and Absolute Price Efficiency in Regulated Utilities." The Review of Economics and Statistics 62(1):81-88. https://doi.org/10.2307/1924275
  4. B. Srdjevic, Y. D. P. Medeiros, and A. S. Faria. 2004. "An Objective Multi-Criteria Evaluation of Water Management Scenarios." Water Resources Management 18(1):35-54. https://doi.org/10.1023/B:WARM.0000015348.88832.52
  5. Banker, R. D. 1984. "Estimating Most Productive Scale Size Using Data Envelopment Analysis." European Journal of Operational Research 17(1):35-44. https://doi.org/10.1016/0377-2217(84)90006-7
  6. Banker, R. D., Charnes, A., and Cooper, W. W. 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis." Management Science 30(9):1078-1092. https://doi.org/10.1287/mnsc.30.9.1078
  7. Bian, Y., and Yang, F. 2010. "Resource and environment efficiency analysis of provinces in china: A DEA Approach based on Shannon's Entropy." Energy Policy 38(4):1909-1917. https://doi.org/10.1016/j.enpol.2009.11.071
  8. Chang, D. S., and L. K. Lo. 2005. "Measuring the Relative Efficiency of a Firm's Ability to Achieve Organizational Benefits after ISO Certification." Total Quality Management and Business Excellence 16(1):57-69. https://doi.org/10.1080/1478336042000309866
  9. Chang, S. C. 2011. "Returns to Scale in DEA Models for Performance Evaluations." Technological Forecasting and Social Change 78(8):1389-1396. https://doi.org/10.1016/j.techfore.2011.03.015
  10. Charnes, A., Cooper, W. W., and Rhodes, E. 1978. "Measuring the Efficiency of Decision Marking Units." European Journal of Operational Research 2:429-444. https://doi.org/10.1016/0377-2217(78)90138-8
  11. Charnes, A., Cooper, W. W., Golany, B., Seiford, L. M., and Stutz, J. 1985. "Foundations of Data Envelopment Analysis for Pareto-Koopman's Efficient Empirical Production Functions." Journal of Econometrics 30:1-7. https://doi.org/10.1016/0304-4076(85)90128-9
  12. Charnes, Α., Cooper, W. W., and Rhodes, E. 1981. "Data Envelopment Analysis: Approach for Evaluating Program and Managerial Efficiency with an Application to the Program Follow Through Experiment in US Public School Education." Management Science 27(6):668-697. https://doi.org/10.1287/mnsc.27.6.668
  13. Chen, Y. 2004. "Ranking Efficient Units in DEA." OMEGA 32:213-219. https://doi.org/10.1016/j.omega.2003.11.001
  14. Chen, Y., and Zhu, J. 2004. "Measuring Information Technology's Indirect Impact on Firm Performance." Information Technology and Management 5(1-2):9-22. https://doi.org/10.1023/B:ITEM.0000008075.43543.97
  15. Chung-Hsing Yeh. 2002. "A problem-based selection of multi-attribute decision-making methods." International Transactional in Operational Research 9(2):169-181. Farrell https://doi.org/10.1111/1475-3995.00348
  16. Cook, W. D., and Seiford, L. M. 2009. "Data Envelopment Analysis (DEA)-Thirty Years On." European Journal of Operational Research 192(1):1-17. https://doi.org/10.1016/j.ejor.2008.01.032
  17. Cooper, W. W., Seiford, L. M., and Tone, K. 2000. Data Envelopment Analysis: A Comprehensive Text with Models, Applications. References and DEA-Solver Software, Kluwer Academic Publishers.
  18. Fare, R., Grosskopf, S., Norris, M., and Zhang, Z. 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries." The American Economic Review:66-83.
  19. Forker, L. B. 1997. "Factors Affecting Supplier Quality Performance." Journal of Operations Management 15(4):243-269. https://doi.org/10.1016/S0272-6963(97)00001-6
  20. Foster Jr, S. T. 2008. "Towards an Understanding of Supply Chain Quality Management." Journal of Operations Management 26(4):461-467. https://doi.org/10.1016/j.jom.2007.06.003
  21. Garcia-Sanchez, I. M. 2007. "Efficiency and Effectiveness of Spanish Football Teams: a Three-stage DEA Approach." Central European Journal of Operations Research 15(1):21-45. https://doi.org/10.1007/s10100-006-0017-4
  22. Hwang, S. N. and Kao, T. L. 2006. "Measuring Managerial Efficiency in Non-Life Insurance Companies : An Application of Two-stage Data Envelopment Analysis." International Journal of Management 15(1):41-65.
  23. Kao, T. L. and Hwang, S. N. 2008. "Efficiency Decomposition in two-stage Data Envelopment Analysis : An Application to Non-life Insurance Companies in Taiwan." European Journal of Operational Research 195(1):201-235.
  24. Lewis, H. F., and T. R. Sexton. 2004. "Network DEA : Efficiency Analy sis of Organizations with Complex Internal Structure." Computers and Operations Research 31(9):1365-1410. https://doi.org/10.1016/S0305-0548(03)00095-9
  25. Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., and Rao, S. S. 2006. "The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance." Omega 34(2):107-124. https://doi.org/10.1016/j.omega.2004.08.002
  26. Liang, L., Cook, W. D., and Zhu, J. 2008. "DEA Models for Two-stage Processes: Game Approach and Efficiency Decomposition." Naval Research Logistics (NRL) 55(7):643-653. https://doi.org/10.1002/nav.20308
  27. Liang, L., F. Yang, W. D. Cook, and J. Zhu. 2006. "DEA Models for Supply Chain Efficiency Evaluation." Annals of Operations Research 145(1):35-49. https://doi.org/10.1007/s10479-006-0026-7
  28. Lin, C., W. S. Chow, C. N. Madu, C. Kuei, and P. P. Yu. 2005. "A Structural Equation Model of Supply Chain Quality Management and Organi-zational Performance." International Journal of Production Economics 96(3):355-365. https://doi.org/10.1016/j.ijpe.2004.05.009
  29. Liu, J. S., and Lu, W. M. 2012. "Network-based Method for Ranking of Efficient Units in Two-stage DEA Models." Journal of the Operational Research Society 63(8):1153-1164. https://doi.org/10.1057/jors.2011.132
  30. M. Soleimani-damaneh, M. Zarepisheh. 2009. "Shannon's Entropy for combining the efficiency results of different DEA models: Method and application." Expert System with Applications 36(1):5146-5150. https://doi.org/10.1016/j.eswa.2008.06.031
  31. Morteza Shafiee, Mohsen Ahmadi. 2012. "Performance Evaluation with DEA and Shannon's Entropy." American Journal of Scientific Research, Issue 52:73-77.
  32. Park, S., J. L. Hartley, and D. Wilson. 2001. "Quality Management Practices and Their Relationship to Buyer'sSupplier Ratings : A Study in the Korean Automotive Industry." Journal of Operations Management 19(6):695-712. https://doi.org/10.1016/S0272-6963(01)00065-1
  33. Robinson, C. J., and M.K. Malhotra. 2005. "Defining the Concept of Supply Chain Quality Management and Its Relevance to Academic and Industrial Practice." International Journal of Production Economics 96(3):315-337. https://doi.org/10.1016/j.ijpe.2004.06.055
  34. Seiford, L. M. & Zhu, J. 1999. "Infeasibility of Super-Efficiency Data Envelopment Analysis Models." INFOR 37(2):174-187.
  35. Seiford, L. M., and Zhu, J. 1998. "Sensitivity Analysis of DEA Models for Simultaneous Changes in All the Data." Journal of the Operational Research Society 49(10):1060-1071. https://doi.org/10.1057/palgrave.jors.2600620
  36. Sexton, T. R., and Lewis, H. F. 2003. "Two-stage DEA : An application to major League baseball." Journal of Productivity Analysis 19.
  37. Thomas, F. S. 2008. "Towards an Understanding of Supply Chain Quality Management." Journal of Operations Management 26(.4):461-467. https://doi.org/10.1016/j.jom.2007.06.003
  38. Tien-Chin Wang, Hsien-Da Lee. 2009. "Developing a fuzzy TOPSIS approach based on subjective weights and objective weights." Expert Systems with Applications 36(5):8980-8985. https://doi.org/10.1016/j.eswa.2008.11.035
  39. Wang, J., and Y. F. Shu. 2007. "A Possibilistic Decision Model for New Product Supply Chain Design." European Journal of Operational Research 177(2):1044-1061. https://doi.org/10.1016/j.ejor.2005.12.032
  40. Yang, Z. 2006. "A Two-stage DEA Model to Evaluate the Overall Performance of Canadian Life and Health Insurance Companies." Mathematical and Computer Modelling 43(7)910-919. https://doi.org/10.1016/j.mcm.2005.12.011
  41. Yoo, H. 2003. "A Study on the Efficiency Evaluation of Total Quality Management Activities in Korean Companies." Total Quality Management and Business Excellence 14(1):119-128. https://doi.org/10.1080/14783360309705
  42. Zhu, J. 1996. "Data Envelopment Analysis with Preference Structure." Journal of the Operational Research Society:136-150.
  43. Zhu, J. 1996. "Robustness of the Efficient DMUs in Data Envelopment Analysis." European Journal of Operational Research 90(3):451-460. https://doi.org/10.1016/0377-2217(95)00054-2
  44. Zhu, J. 2000. "Multi-factor Performance Measure Model with an Application to Fortune 500 Companies." European Journal of Operational Research 123(1):105-124. https://doi.org/10.1016/S0377-2217(99)00096-X
  45. Zhu, J. 2001. "Super-Efficiency and DEA Sensitivity Analysis." European Journal of Operational Resarch 129:443-455. https://doi.org/10.1016/S0377-2217(99)00433-6
  46. Zhu, J., and Shen, Z. H. 1995. "A Discussion of Testing DMUs' Returns to Scale." European Journal of Operational Research 81(3):590-596. https://doi.org/10.1016/0377-2217(93)E0354-Z